Asociación Empresarial De Investigación Centro Tecnológico Del Calzado Y Del Plástico De La Región De Murcia, Spain

Region of Murcia

Fundación Cluster Agroalimentario de la Región de Murcia

Agro2Circular (A2C) focuses on the implementation of the first territorial system solution for upcycling the main residues in the agri-food sector (fruits & vegetables and plastic multilayers) into high added value products, supported by a digital tool and based on a systemic approach with high replicable/scalable potential. With this solution, A2C will address key industrial, economic and social challenges in the agri-food sector:
 

1. Fruits and vegetables are a major group contributing to food waste along the food supply chain, accounting for more than 40 % of waste. They are an excellent source of natural bio-actives. However, this waste is not recycled. A2C will valorise them through green pathways to recover these bio-actives for the production of nutraceuticals, functional foods and cosmetics.
2. Multilayer plastic film is widely used as industrial packaging to protect food and agricultural crops due to their unique barrier properties. However, there is a lack of sorting and recycling technologies for economic and environmentally sustainable recovery of these multilayer structures. A2C will develop the first recycling value chain for post-industrial multilayer films based on a synergistic approach combining innovative sorting, physical delamination, enzymatic depolymerisation, decontamination and mechanical recycling.
3. The agri-food sector is not yet sufficiently digitised. A2C will implement a Data Integration System (DIS) as a digital tool to ensure traceability and as a predictive decision-making tool in the agri-food sector.

A2C will be demonstrated in the Region of Murcia (Spain) and aims to provide a system solution for the territorial implementation of the circular economy (CE) that can be replicated across Europe.

D6.2 A2C Data Integration System. A2C Data Integration System software will be available to the public. It will include a system for storing, saving, processing and communicating the information across the value chain (private sector) and to citizens & general public (public sector) as well as a decision support tool for predicting the most appropriate route for the valorisation of the agri-food wastes (vegetable wastes and plastic multilayers) and the traceability tool of the A2C products and processes.

D6.3 A2C Demonstrators. There are nine Demonstrators for the technologies and prototypes of the valorised products at both the relevant scale and industrial relevant environment to demonstrate the A2C solution at TRL6-7.

D6.4 Basis for future industrial implementation. The protocol paper for the integration of all processes and the validation in a real environment is developed by the end users who also report the digitalisation of all the project data, including all the data in the Data Integration System (D6.2).

D6.6 Natural capital assessment of demonstrated solutions. A synthesis report on the capital assessment on the solutions demonstrated in the project, including links with natural capital, the impacts of operations on natural capital, improvements of business models and monetary values of ecosystem services generated.

D7.1, D7.2 & D7.3 Public Engagement (PE) Strategy & Summary of Activities and Results. In D7.1, key inputs for the PE strategy design and its implementation will be elaborated. D7.2 and D7.3 will report the activities carried out and stablish actions for the forthcoming stages.

D7.4 Community-based innovation schemes. A report compiling the main lessons learned and impacts obtained from the application of this scheme in A2C, including a collection of good practices from other regions.

D7.5 Evaluation framework and methodology. A detailed evaluation framework and methodology for data collection (encompassing environmental, economic and social evaluation to be carried out during the project).

D7.6 & D7.7 Environmental assessment, LCA and A2C circularity monitoring. D7.6 will include a synthesis report of screening LCA, while D7.7 comprises a full LCA. It will also include the circularity assessment of the cluster advancement towards circularity.

D7.8 & D7.9 Socio-economic and sociocultural analysis report. D7.8 will include a synthesis report of screening socio-economic and sociocultural analysis, while D7.9 comprises the results at the end of the project.

D7.10 A2C systemic solution model and self-assessment tool. This report describes the processes of the model generation and the definition of the dimensions, indicators, including the self-assessment tool derived from the model to evaluate the preparedness of territories to adopt the circular model for the agri-food sector.

D7.11 A2C Circular Economy Action Plan report. This report will describe the Circular Economy Action Plan (CEAP) of the agri-food cluster of the Region of Murcia, for the territorial deployment of circular systemic solutions at the regional scope.

D7.12 & D7.13 Policy Briefs. Policy briefs are mainly aimed at decision makers and institutions; D7.2 is a draft of the final version and represents a preliminary analysis addressing challenges for the implementation of circular solutions, including regulatory and governance issues. The final version (D7.13) will provide recommendations based on analysis for the integration of small-scale sectoral initiatives and systemic circular solutions into comprehensive CE models.

D7.14 and D7.15. Financing recommendations. As for D7.12 and D7.13, these are aimed at decision makers, summarising the most important conclusions about financing schemes and recommendations for their improvement, for the implementation of circular models at the regional level (complementary to the policy briefs). D7.12 is the draft version, and D7.14 represents the final version.

D7.16 Report on potential for adoption and scale-up potential. A synthesis report describing the medium and long-term potential for the replication and scalability of the A2C solutions and governance model in Europe.

D7.17 Lombardy Action Plan. This synthesis report describes the cluster CEAP for the deployment of circular systemic solutions within Lombardy Region in Italy, based on the model for the Region of Murcia.

D7.18 Lithuania NUTS-2 Action Plan. This synthesis report describes the cluster CEAP for the deployment of circular systemic solutions in Lithuania, based on the model for the Region of Murcia.

D8.6 & D8.7 Toolkit of guidelines and training materials. D8.6 provides the guidelines (draft) for the elaboration of didactic materials and analysis of lessons learned; D8.7 is the final version. They are aimed to be transferred and shared with other projects, initiatives and institutions working on community-based research, participatory methods and education for environmental issues or local climate change mitigation as well as those targeting cluster and industry about circular business models, financing and regulatory issues: CEBMs, financing & regulatory issues, public engagement, circular economy and environmental education. They include best practices and a training plan for local actors/education services.

• There is a need for traceability of products and processes in value chains that work at the global scale.
• Need to address cultural barriers supporting measures at the local and regional level.
• Hesitance of industries towards Circular economy (perceived as a barrier for growth and not as opportunity); low market uptake of developed solutions; lack of business models suitable for the regions at the local/regional level, and scarce knowledge on existing funding programmes.
• There are regulatory and governance barriers that must be overcome.
• Stakeholder engagement is key for the acceptance and adoption of circular economy models.
• Multidimensional models capturing all the dimensions of CE are needed.

• Input, support and, in particular, knowledge provision to the Thematic Working Groups of the CCRI-CSO.
• Work Package of applications to other regions as key delivery for the CCRI-CSO for the support of Pilots.
• Exchanges related to cluster activities of Green Deal Call on Circular Economy projects.
• The sharing of information and knowledge of the project with CCRI-CSO.
• Active participation in CCRI support activities of Pilot and Fellow cities and regions, such as: impact assessment; training/capacity building; mentoring on different issues; stakeholder engagement; communication and dissemination of results; social innovation; among others.
• Participation in CCRI events: workshops, seminars, conferences, fairs.
• Evaluation/assessment of CSS (environmental, economic and social dimension) thanks to the evaluation framework and the knowledge generated in the A2C agri-food value chains (D7.5, D7.6, D7.7, D7.8, D7.9)
• Assessment on standardisation of circular products and processes in the agri-food sector.

• Digital Solution System (DSS) includes a decision support tool and traceability tool (see D6.2).
• Demonstrators report on the implementation of the value chains and technologies at the regional level (scale-up at industrial level) (D6.3 and D6.4). New biodegradable and/or biobased products available at industrial scale (plastics, food and cosmetic).
• Community-based schemes (ongoing). A2C has implemented a community-based scheme at the city market of Alhama de Murcia, in which agri-food wastes were collected from vendors and sent for upcycling. The scheme is also a platform for raising awareness on circular economy and serves as a showcase to present the products developed in the project. Results will be reported in D7.4 together with other community-based schemes, serving as case studies.
• Evaluation framework (D7.5) will provide indicators, methodologies and data collection tools that can be monitored and assessed during the implementation of CSS.
• Case studies. A2C will evaluate different value chains in the agri-food sector (fruit and vegetables, multilayer plastics) from the environmental, economic and social point of view, that can be applied in other regions (D7.5 to D7.9).
• Business models. The data collected from the technological developments in A2C, together with the exploitation strategy, will provide business models for circular products, processes and services that ensure marketability and competitiveness for industrial stakeholders.
• Multidimensional model. Based on the analysis of environmental, socio-economic, and sociocultural results, the A2C circular model will cover the different dimensions to enable the deployment of circular economy at the regional level (technological, regulatory, governance, economic and financial, social) and the definition of roadmaps (CEAPs). The linked Self-assessment tool will allow the regions to evaluate their preparedness towards circular economy in the different dimensions to adopt the circular model.
• Regional CEAPs. Three CEAPs will be defined for the region of Murcia as well as for replication regions (Lombardy and Lithuania) and for the adoption of the A2C multidimensional model.

The workshop held in Murcia (INFO headquarters) in the context of the Task 7.5 was the opportunity to identify key regulatory bottlenecks in the region:

• Food Waste Act: lack of knowledge on the Food Waste Act and its potential effects on the Circular Economy in the Region.
• Lack of influence in the regulatory process: it is difficult for citizens and companies to influence the European regulatory process. Policy briefs in European projects are pointed to as an important tool of influence in this aspect.
• Specific Law on Circular Economy for the Region of Murcia: there is widespread agreement that a specific waste law or circular economy, adapted to the local peculiarities of the production system and the different value chains of Murcia, would be essentially beneficial for the region.
• Complexity of Globalisation: actors recognise the complexity of globalisation in the circular economy. They question how to protect products that meet the requirements of the circular economy in a global scenario and suggest the possibility of imposing taxes or limits to products coming from third countries (subject to looser regulations, that affect the competitiveness of more sustainable products due to lower prices/production costs).
• Need for Global Regulations: the need for global standards or certification that supports the traceability of products within a circular system is highlighted. Emphasis is also placed on the existence of European legislation that protects, such as the GDPR, but it is recognised that such protection may be lost when products are imported from abroad.
• Competitiveness Issues: it is indicated that imported food products may not follow the same production processes as local ones, using inputs that could be banned in the EU, which affects competitiveness.
• Develop Local Strategies: local strategies can be implemented to favour products that meet certain requirements of the circular economy. The need to raise awareness in society about the benefits of local products, ensure their competitiveness and encourage their use by administrations is emphasised.
• EU Taxonomy: the EU is developing a taxonomy that could change investments, as products will be required to follow that taxonomy to receive funding. This could help prevent greenwashing and establish clear criteria.

There is a lack of disclosure of funding programmes (i.e FEDER) but also a need for the coordination and review of their structures to make them more efficient and avoid overlaps.

Subsidies/taxes that encourage resource use: implement financial incentives including environmental impacts in the cost of goods and services.

The workshop held in Murcia (INFO headquarters), in the context of the Task 7.5, was the opportunity to identify key regulatory drivers that can help drive-up CE in the region. Further workshops are to be organised on this issue.

• Education and citizen awareness: implement educational and awareness campaigns aimed at informing and educating citizens about the importance and benefits of the circular economy.
• Improve stakeholder participation in regulatory processes: enhance the participation of key stakeholders, such as companies and citizens, in the regulatory process.
• Circular economy law for the region of Murcia: develop a law that takes into account local particularities and the different value chains of the region.
• Review and compliance with current legislation: analyse and ensure that current legislation promoting CE is being applied effectively in all its aspects.
• Protection of local products: study the possibility of implementing tariffs or similar measures to protect products that meet the requirements of the circular economy in a global scenario.
• Promotion of global traceability standards or certifications: promote in international forums the creation of regulations or certifications that support the traceability of products within a circular system.
• Improving the competitiveness of local products: work on measures that allow local food products to be competitive against imported ones that use inputs banned in the EU.
• Development of local circular economy strategies: implement strategies that favour products that meet certain requirements of the circular economy and encourage their use by administrations.
• Implementation of the EU Taxonomy: ensure that local products and businesses follow the taxonomy being developed by the EU for funding.

Incorporation of international trade rules into local regulation: the rules and regulations on international trade are aligned with the internal rules for the Circular Economy in the Region of Murcia.

D7.14 presents the main financial schemes for CE.

Supranational:

• European Union Funds are key in the funding of CE in Europe. There are several funding options following the nature of the initiative to finance:
  • Horizon Europe (CL6);
  • Regional Policy Support (Interreg Europe);
  • LIFE funding scheme;
  • o Single Market Programme (SMP);
  • Structural Reform Support Programme (SRSP);
  • FEDER funds.
• Financial incentives (such as CAPEX grants).
• Financial institutions directly funding CE initiatives:
  • World Bank Group: the World Bank Group (WBG) has increased its recognition regarding Municipal Solid Waste Management (MSWM) in a circular economy.
  • European Investment Bank (EIB): the EIB provides financial support and advice to meet the needs of businesses in areas such as climate, cohesion, innovation, SMEs and sustainability in relation to circular economy projects inside and outside the EU that aim to prevent waste through reuse, recycling and regeneration of natural systems.
  • Joint Initiative on Circular Economy (JICE).
  • European Bank for Reconstruction and Development (EBRD).

Financial institutions can promote CE through:

• Green bonds: aim to support and finance sustainable and environmentally friendly projects and have the World Bank Group as one of the main issuers (e.g. TSKB Green Bond Issue).
• Green credits: instruments used by banks to finance projects dealing with high levels of pollution in order to reduce the carbon emissions generated, and to finance energy efficiency in order to meet the targets set by the EU (e.g. World Bank’s USD 212.5 million loan to VPBank in Vietnam).
• Green Exchanges: aimed at investors who have an interest in investing in and acquiring shares in environmentally friendly companies (e.g. Luxembourg Green Exchange).
• Social Bonds: debt instruments that focus on financing social and humanitarian projects by helping the neediest communities.

Green Public Procurement:

Green Public Procurement can also constitute a valuable tool to encourage a circular economy (the public sector’s spending comprises around 14 % of the EU’s gross domestic product). For instance, the EU GPP Food Catering Services and Vending Machines Criteria.

Regional funding schemes, Murcia region:

• Grant programme for energy efficiency actions in SMEs and large companies in the industrial sector (to help the industrial sector in the incorporation of energy-efficient technology and the implementation of control systems).
• CHIS grant line for the calculation and certification of the carbon footprint of an organisation/product and their water footprint (to encourage and promote innovative measures in companies through their climate responsibility and sustainability).
• Innovation voucher for optimising industrial processes and products’ eco-innovation (to encourage and promote both product design and process improvement for boosting sustainability in regional enterprises).
• R&D support to regional technological centres for developing sustainable products and processes (to encourage and promote non-economic research and technological development of products and processes).
• R&D support to enterprises for developing sustainable products and processes (encourage and promote research and technological development of products and processes).
• Alternative Private Financing Schemes in the Region of Murcia (ICREF, ICREF financia 100, AVALAM, AQUISGRAN, CRECE, INFO grants to create or maintain employment).

• Reduced volume of F&W waste that goes to landfill due to an increase of valorised agri-food waste.
• Reduced consumption of water of energy: reuse of water in recycling processes.
• Decrease of GHG emission: less F&V waste decomposition in landfill; selection of plastic production processes with lower GHG thanks to LCA and decision support tool, use of renewable energy in production processes.
• Reduction of carbon footprint of plastic pellets compared to commercial pellets (used to produce multilayer plastics).
• Reduced soil pollution: decrease in the amount of multilayer plastics that are left in the soil, elaboration of waste management plans.
• Reduced consumption of raw materials and fossil resources: increased adoption of biobased products, use of recycled plastic and aluminium.

• Raised awareness on circular economy, in particular management of agri-food waste including fruit and vegetables or multilayer plastics, and the opportunities for upcycling.
• Raised acceptance of products (nutraceuticals, plastics) elaborated from upcycled F&V waste and recycled plastic, among civil society but also companies.
• More opportunities for training and capacity building in the circular economy and related issues, facilitated by the training materials (and increased knowledge among the population, boosted demand of courses/degrees related to the circular economy in the agri-food sector).
• Reinforced networks of stakeholders at the regional level, promoting the circular economy (SMEs, CSOs, decision makers).
• Increased circular and climate-neutral practices from the citizens (reduction of food waste, increased knowledge on recycling).

• Innovative recycling processes within the Agro2Circular Project with demonstrated competitiveness (including lower costs of materials, and increased energy and water efficiency).
• Increased job opportunities in R+D, waste management thanks to the business models, and the exploitation of processes and services generated by the project (including assessment, training and mentoring, and development of follow-up projects).
• Increased funding opportunities for circular processes at the regional level: adoption of economic measures of the A2C model and financial recommendations.

A2C Objectives Related to Circularity, Adoption, Replication and Scalability of A2C Systemic Solution:

1. Development of A2C circular business models, including analysis of financing options and integration of business strategy with capital accounting.
2. Building a strong public engagement strategy and effective actions to contribute to the co-creation and acceptance of the multidimensional A2C model, demonstrating adoption in the Murcia A2C cluster and its replication and scaling potential.
3. Implement a pilot community-based innovation programme and explore other successful models demonstrating civic engagement and circular economy business models.
4. Develop the evaluation framework (including indicators, methods and timeline for data collection).
5. Identify environmental, socio-economic and other relevant factors (governance, regulation, policy, standards) for the adoption and replication of the circular economy solution at cluster and EU level.
6. Continuously assess the environmental and socio-economic impacts of A2C and monitor the transition of clusters to the circular economy.
7. Validation of A2C replicability and scalability through the case study of Lombardy (Italy) and NUTS-2 (Lithuania).

Extending the validation of the model and the potential for replication and scalability at EU level by engaging relevant stakeholders and EU clusters and building a community around A2C during the project lifetime: developing practical and effective tools for AC2 adoption, replicability and scalability, including policy and funding recommendations, providing an A2C self-assessment tool to define the implementation of the model, pathways/roadmaps, training packages, case studies, best practices and more.

Some of the results are in progress and cannot be described in detail, for instance:

• The environmental impacts are evaluated at the laboratory level and may vary in the scale-up at industrial level (demonstrators).
• Likewise, economic assessment was performed for the most advanced processes, but not at the industrial level but as screening analysis and results may vary when upscaling to the industrial level.
• In the case of social assessment, there is a limitation of benchmarks.
• All in all, the indicators selected have demonstrated their validity.

Public engagement is challenging especially among vulnerable groups. There is a lack of confidence on public administrations and a high drop-out rates from participative processes. Reaching these groups and involving them on the long term is costly in time. Existing governance infrastructures and models are not adapted to the circular economy. Much of the circular economy is carried out by CSOs and grassroot organisations (not connected with R+D).

Citizens, industries, decision makers, academia

• Green World Compounding SL, Spain
• Saperatec GmbH, Germany
• Iris Technology Solutions Sociedad Limitada, Spain
• Universität Für Bodenkultur Wien, Austria
• Mellizyme Biotechnology Limited, United Kingdom
• Cetec Biotechnology SL, Spain
• Universita' Degli Studi Di Milano-Bicocca, Italy
• Universidad De Alicante, Spain
• Stichting Wetsus, European Centre Of Excellence For Sustainable Water Technology, Netherlands
• Regenera Levante Sl, Spain
• Stichting Centre Of Expertise Watertechnologie, Netherlands
• Asociacion Empresarial De Investigacion Centro Tecnologico Nacional De La Conserva, Spain
• Agrotransformados SA, Spain
• Laboratorios Almond SL, Spain
• Asociacion De Organizaciones De Productores De Frutas Y Hortalizas De La Region De Murcia, Spain
• DMC Research Center SL, Spain
• Citromil SL, Spain
• Mks Instruments Italy, Italy
• Stazione Sperimentale Per L'industria Delle Conserve Alimentari Azienda Speciale, Italy
• Senior Europa Sociedad Limitada, Spain
• Universitat De Valencia, Spain
• Fundacion Cajamar, Spain
• Region De Murcia, Spain
• Asociacion Espanola De Normalizacion, Spain
• Fundacion Cluster Agroalimentario De La Region De Murcia, Spain
• European Association of Development Agencies, Belgium
• Universita Commerciale Luigi Bocconi, Italy
• Teknologian Tutkimuskeskus VTT Oy, Finland
• Fondazione Icons, Italy
• Fundacion Primafrio, Spain
• Instituto De Fomento De La Region De Murcia, Spain
• Ecotrace Plastic SL, Spain
• Equmetrics SL, Spain
• Exus Software Monoprosopi Etairia Periorismenis Evthinis, Greece
• Evrythng Sarl, Switzerland
• Solplast SA, Spain
• Eversia SA, Spain
• Tribu Bio & Wild SL, Spain
• Tecnoalimenti SCpA, Italy
• Lietuvos Pramonininku Konfederacija, Lithuania